The Returns On Capital At Fortescue (ASX:FMG) Don't Inspire Confidence
May 10
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Australian (ASX) Market Analysis & Valuation
UpdatedMay 10, 2025
DataAggregated Company Financials
Companies1594
- 7D0.05%
- 3M-3.8%
- 1Y4.3%
- YTD-0.2%
Over the last 7 days, the market has remained flat, although notably the Healthcare sector declined by 3.2%. More promisingly, the market is up 4.3% over the past year. Earnings are forecast to grow by 12% annually.
Market Valuation and Performance
Has the Australian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 11 May 2025 | AU$2.7t | AU$1.2t | AU$103.7b | 17.8x | 26.5x | 2.3x |
| Tue, 08 Apr 2025 | AU$2.4t | AU$1.2t | AU$106.9b | 16.7x | 22.8x | 2x |
| Thu, 06 Mar 2025 | AU$2.7t | AU$1.2t | AU$104.9b | 17.6x | 25.9x | 2.2x |
| Sat, 01 Feb 2025 | AU$2.8t | AU$1.2t | AU$90.2b | 19.8x | 31.3x | 2.4x |
| Mon, 30 Dec 2024 | AU$2.7t | AU$1.2t | AU$90.1b | 19.9x | 30.3x | 2.3x |
| Wed, 27 Nov 2024 | AU$2.8t | AU$1.2t | AU$88.4b | 19.4x | 31.2x | 2.4x |
| Fri, 25 Oct 2024 | AU$2.7t | AU$1.2t | AU$88.0b | 19.8x | 30.8x | 2.3x |
| Sun, 22 Sep 2024 | AU$2.7t | AU$1.2t | AU$87.8b | 19.4x | 30.9x | 2.3x |
| Tue, 20 Aug 2024 | AU$2.6t | AU$1.1t | AU$91.0b | 19.7x | 28.9x | 2.3x |
| Thu, 18 Jul 2024 | AU$2.7t | AU$1.1t | AU$90.9b | 19.5x | 29.5x | 2.3x |
| Sat, 15 Jun 2024 | AU$2.6t | AU$1.2t | AU$92.3b | 18.9x | 27.9x | 2.2x |
| Mon, 13 May 2024 | AU$2.6t | AU$1.2t | AU$93.1b | 19.8x | 27.7x | 2.2x |
| Wed, 10 Apr 2024 | AU$2.6t | AU$1.2t | AU$94.7b | 20.4x | 27.6x | 2.2x |
| Fri, 08 Mar 2024 | AU$2.6t | AU$1.2t | AU$96.4b | 19.8x | 26.9x | 2.2x |
| Sun, 04 Feb 2024 | AU$2.6t | AU$1.2t | AU$116.2b | 19x | 22.1x | 2.2x |
| Tue, 02 Jan 2024 | AU$2.6t | AU$1.2t | AU$114.5b | 18.8x | 22.3x | 2.2x |
| Thu, 30 Nov 2023 | AU$2.4t | AU$1.2t | AU$115.9b | 17.9x | 20.3x | 2x |
| Sat, 28 Oct 2023 | AU$2.3t | AU$1.2t | AU$118.4b | 17.4x | 19.7x | 1.9x |
| Mon, 25 Sep 2023 | AU$2.4t | AU$1.2t | AU$119.9b | 17.7x | 19.9x | 2x |
| Wed, 23 Aug 2023 | AU$2.4t | AU$1.2t | AU$130.3b | 16.8x | 18.4x | 2x |
| Fri, 21 Jul 2023 | AU$2.5t | AU$1.2t | AU$143.8b | 16.5x | 17.1x | 2.1x |
| Sun, 18 Jun 2023 | AU$2.4t | AU$1.2t | AU$143.6b | 16x | 16.9x | 2.1x |
| Tue, 16 May 2023 | AU$2.4t | AU$1.2t | AU$145.4b | 16.3x | 16.8x | 2.1x |
| Thu, 13 Apr 2023 | AU$2.5t | AU$1.2t | AU$144.7b | 16.1x | 17x | 2.1x |
| Sat, 11 Mar 2023 | AU$2.4t | AU$1.2t | AU$145.0b | 16.1x | 16.6x | 2.1x |
| Mon, 06 Feb 2023 | AU$2.5t | AU$1.1t | AU$147.1b | 16.3x | 17.3x | 2.3x |
| Wed, 04 Jan 2023 | AU$2.4t | AU$1.1t | AU$148.4b | 14.7x | 15.9x | 2.2x |
| Fri, 02 Dec 2022 | AU$2.5t | AU$1.1t | AU$149.4b | 14.8x | 16.5x | 2.3x |
| Sun, 30 Oct 2022 | AU$2.3t | AU$1.1t | AU$150.9b | 14.3x | 15.2x | 2.1x |
| Tue, 27 Sep 2022 | AU$2.2t | AU$1.1t | AU$149.6b | 14x | 14.6x | 2x |
| Thu, 25 Aug 2022 | AU$2.4t | AU$1.0t | AU$143.3b | 15.3x | 16.5x | 2.3x |
| Sat, 23 Jul 2022 | AU$2.3t | AU$1.0t | AU$132.9b | 15.1x | 17.3x | 2.2x |
| Mon, 20 Jun 2022 | AU$2.2t | AU$1.0t | AU$133.9b | 14.5x | 16.1x | 2.1x |
| Wed, 18 May 2022 | AU$2.4t | AU$1.1t | AU$134.0b | 16.3x | 18.3x | 2.3x |
Price to Earnings Ratio
18.3x
Current Market PE
- Investors are optimistic on the Australian market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 26.5x which is higher than its 3-year average PE of 22.1x.
Past Earnings Growth
- The earnings for Australian listed companies have declined 8.2% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.9% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Sector Trends
Which sectors have driven the changes within the Australian Market?
| AU Market | 0.052% | |
| Utilities | 2.59% | |
| Tech | 2.03% | |
| Consumer Staples | 1.81% | |
| Real Estate | 1.38% | |
| Industrials | 1.24% | |
| Energy | 1.12% | |
| Materials | 0.88% | |
| Consumer Discretionary | 0.82% | |
| Telecom | 0.75% | |
| Financials | -0.95% | |
| Healthcare | -3.19% | |
Sector PE
- Investors favour the Tech sector the most for future growth which is trading above its 3-year average PE ratio.
- The market's confidence is likely because analysts are expecting annual earnings growth of 23.4%, which is higher than its past year's earnings growth of 0.4% per year.
- The Energy sector is the least preferred by investors for future growth, which is trading below its 3-year average of 13.8x.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 23% over the next 5 years.
- This is better than its past earnings growth rate of 0.4% per year.
- In contrast, the Financials sector is expected to see its earnings grow by 4.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| NST Northern Star Resources | AU$19.77 | 3.1% +AU$6.3b | 34.8% | PE29.9x | Materials | |
| MQG Macquarie Group | AU$203.31 | 2.7% +AU$1.9b | 5.2% | PE19.9x | Financials | |
| QBE QBE Insurance Group | AU$22.59 | 4.8% +AU$1.6b | 28.3% | PE12.6x | Financials | |
| PME Pro Medicus | AU$251.66 | 5.5% +AU$1.4b | 118.5% | PE267.5x | Healthcare | |
| EVN Evolution Mining | AU$8.63 | 8.6% +AU$1.4b | 124.7% | PE25x | Materials |
